Rackspace Technology (NASDAQ:RXT) Trading Down 6.5% – Here’s What Happened

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) dropped 6.5% during trading on Wednesday . The company traded as low as $2.27 and last traded at $2.30. Approximately 19,780,159 shares were traded during trading, a decline of 37% from the average daily volume of 31,247,121 shares. The stock had previously closed at $2.46.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on RXT shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada lifted their price target on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research note on Friday, February 27th. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Rackspace Technology currently has a consensus rating of “Reduce” and an average price target of $1.70.

Rackspace Technology Price Performance

The company has a market cap of $591.92 million, a price-to-earnings ratio of -2.56 and a beta of 1.80. The firm has a 50 day simple moving average of $0.97 and a 200-day simple moving average of $1.19.

Insider Activity at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 45,393 shares of Rackspace Technology stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $1.81, for a total value of $82,161.33. Following the completion of the sale, the executive vice president owned 2,464,180 shares in the company, valued at approximately $4,460,165.80. This trade represents a 1.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Mark A. Marino sold 234,683 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the sale, the chief financial officer directly owned 2,193,115 shares in the company, valued at approximately $3,574,777.45. The trade was a 9.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 300,259 shares of company stock worth $501,226. Company insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after acquiring an additional 359,087 shares during the period. Geode Capital Management LLC increased its stake in Rackspace Technology by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock worth $2,338,000 after purchasing an additional 96,760 shares during the period. AustralianSuper Pty Ltd acquired a new stake in shares of Rackspace Technology during the third quarter worth about $2,276,000. JPMorgan Chase & Co. boosted its stake in shares of Rackspace Technology by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock valued at $2,065,000 after purchasing an additional 26,510 shares during the period. Finally, Janus Henderson Group PLC grew its holdings in shares of Rackspace Technology by 70.7% in the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock valued at $1,020,000 after purchasing an additional 435,113 shares in the last quarter. Hedge funds and other institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.